A current or former employee of W.R. Grace is trying to blow the whistle, alleging that the kidney dialysis unit of the Boca Raton, Fla.-based company bilked Medicare for more than $200 million.
In a recent filing with the Securities and Exchange Commission, Grace disclosed the charge was made against its National Medical Care unit in a lawsuit filed under seal in U.S. District Court in Miami in 1994. A Grace spokesman said the company asked the judge to partially unseal the suit so it could alert a potential merger partner. Fresenius AG, a German dialysis equipment company, has agreed to purchase Waltham, Mass.-based NMC in a spinoff valued at about $4 billion.
The Grace spokesman said the suit will not have an effect on the deal. Shareholders of both companies are expected to vote on the transaction Sept. 16.